CAPITAL: LISBON
MONETARY UNIT: ESCUDO
REFINING CAPACITY: 304,172 B/CD
OIL PRODUCTION: 0
OIL RESERVES: 0
GAS RESERVES: 0
Portugal planned to sell 21% of Galpenergia SGPS SA, the country's biggest oil and gas company, reducing its direct and indirect stakes to a combined 27%.
ENI of Italy would be allowed to increase its stake up to 50%. ENI owned 33% of Galp, making it the company's biggest shareholder after the government. The Portuguese government owned 35% of Galp directly, and state bank Caixa Geral de Depositos 13%.
The government had created Galp from Petrogal and Gas de Portugal. It planned to sell Galp shares on the stock exchange by the end of June 2002.
Petrogal was trying to reposition itself as a multinational energy firm, especially in the areas of natural gas and refined products distribution.
Petrogal also was targeting an expansion of investments around the world, upstream and downstream.
The International Energy Agency, Paris, said Algeria would remain the major source of gas supply to the Portuguese market despite diversification efforts.
The agency praised Portugal's move to introduce a gas network to balance its heavy dependence on imported oil. As Portugal was the last country in a three-nation supply chain involving Morocco and Spain, the IEA recommended that the government "monitor gas markets to ensure security of supply and adapt the regulations on gas storage to the future liberalization of the gas market."
The European Union gave Portugal a 10-year transition period in which to prepare for open competition. After 2008, big consumers would be able to enter contracts with different suppliers.
"In spite of possible diversification of suppliers, Portugal is expected to remain very dependent on a single gas supply source, Algeria," said IEA. Portugal received Algerian gas through pipelines via Morocco and Spain.
The IEA also recommended that Portugal increase its emergency oil stocks and end gasoline and diesel price controls.
Petrogal awarded contracts to France's Technip SA to revamp three hydrosulfurization units: two at its Sines refinery and one at its Porto refinery. The projects were aimed at producing gas oil to European Union sulfur-emission standards. Investment would be 20 million euros.
Work on the Porto unit, which would include installation of a reactor, was due completion in late 2001. Work on the Sines units, which would involve increasing capacity to 37,000 b/sd from 34,000 b/sd and installing reactors, compressors, and heat exchangers, was due completion in 2002.
